Philippines to auction 25gw of renewables annually from 2027
By Abdullahi Lukman
The Department of Energy (DOE) has announced plans to hold annual competitive renewable energy auctions from 2027 to 2035, offering at least 25 gigawatts (GW) of capacity each year to accelerate the country’s clean energy transition.
The next round, Green Energy Auction 6 (GEA-6), scheduled for 2027, will seek to procure 3.2GW of large-scale solar projects across Luzon, Visayas and Mindanao, along with 85MW of rooftop solar in the Visayas and Mindanao grids. Solar technology is expected to dominate several of the upcoming auction rounds.
Future rounds will diversify technology focus. GEA-7 will prioritize rooftop solar and solar projects paired with battery energy storage systems (BESS), while GEA-8 will cover solar-on-stilts and canal-top installations. GEA-9 is set to include biomass, geothermal, solar, hydropower and onshore wind.
The DOE added that an additional 5.6GW from other renewable technologies will be auctioned between 2028 and 2035.
The new schedule builds on the completion of GEA-4 and GEA-5 last year. GEA-4 awarded more than 6GW of solar capacity and 1GW of battery storage, marking the first inclusion of solar-plus-storage projects, while GEA-5 was the country’s first auction dedicated exclusively to offshore wind.
Energy Secretary Sharon S. Garin said the auction pipeline is designed to provide “market visibility” to developers and financiers by offering a clear schedule of procurement-backed projects aimed at delivering affordable and reliable clean power.
A key feature of the Green Energy Auction (GEA) programme is the Renewable Energy Payment Agreement (REPA), which provides fixed-price 20-year offtake contracts.
The structure shields investors from fluctuations in wholesale electricity prices and line rental costs under the Philippines’ locational marginal pricing system, improving revenue certainty.
Energy consultancy Aurora Energy Research described the REPA framework as one of the most attractive routes to market for renewable developers in the Philippines, citing improved debt service coverage ratios and reduced exposure to merchant risk.
However, the firm cautioned that generators are paid only for delivered electricity, exposing projects to curtailment risk.
Developers also face potential penalties if they fail to meet their Delivery Commencement Date, leaving execution risks such as permitting delays and grid connection challenges unresolved.
The DOE said the expanded auction programme aims to convert growing investor interest into operational projects, strengthening energy security and supporting the country’s long-term clean energy goals.